Global LED Market 2016-2020
Overview of the LED market
The global LED market is envisaged to witness tremendous growth and will post a stupendous CAGR of close to 17% over the forecast period. The increasing need for low electricity consumption across the globe is one of the most significant factors propelling the growth prospects for this market. LEDs use at least 75% less energy and last 25 times longer than incandescent bulbs. With the growing awareness of eco-friendly technologies and sustainable development, manufacturers are increasingly focussing on the production of energy-efficient, LED lights. Moreover, LEDs contain solid mercury content, which is less likely to pollute the environment than the liquid mercury in incandescent bulbs. With several governments around the world banning the use of incandescent bulbs, including China, and promoting the adoption of LED lights, the market for LEDs has a positive outlook in the coming years.
In this industry research study, the analysts have estimated factors such as the reduction in prices of LED components to impel the growth prospects for this market until the end of 2020. A fall in the demand for LED products for backlighting has led to a sharp decline in the average selling price of LED chips and other LED products. During the forecast period, manufacturers are anticipated to continue to explore cost-cutting solutions for LEDs. Besides lowering the prices of LED chips, LED manufacturers will start evaluating whether the prices for LED drivers and other LED components can be further reduced. Manufacturers are envisaged to come up with a cost reduction solution through the overall system design, which will lead to the augmented adoption of LEDs over the next four years.
Segmentation by application and analysis of the LED market
- General lighting
- Automotive lighting
During 2015, the general lighting segment dominated the market and accounted for more than 40% of the market share. Factors such as increasing installation of LEDs for street lighting and government initiatives to distribute LED bulbs to domestic consumers at a subsidized rate are contributing to this segment’s growth until the end of 2020.
Geographical segmentation and analysis of the LED market
In terms of geography, the APAC region led the global LED market and is likely to reach close to USD 15 billion by 2020. Factors such as rapid construction in many Asian countries, government incentives in countries such as India and China to promote energy-efficient lights, and the presence of a large number of LED chip and package factories in China, Japan, South Korea, and Taiwan to aid in the growth of this market in the APAC region.
Competitive landscape and key vendors
The global LED market is highly fragmented owing to the presence of several large and small-sized, local manufacturers. The LED industry is experiencing price war among vendors which is affecting the company profits.
Key vendors in this market are -
- GE Lighting
- LG Innotek
- Samsung Electronics
- Seoul Semiconductor
Other prominent vendors in the market are Dialight, Eaton, Emerson Electric, Everlight Electronics, Lite-On, MLS Electronics, Toshiba Lighting and Technology, and Toyoda Gosei.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global LED market?
- What are the key market trends impacting the growth of the global LED market?
- What are the challenges to market growth for LEDs?
- Who are the key vendors in the global LED market?
- What are the market opportunities and threats faced by the vendors in the global LED market?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global LED market?
Technavio also offers customization on reports based on specific client requirement.
- Global Packaged GaN LED Market 2016-2020
- Global LED Industrial Lighting Market 2016-2020
- Global Automotive LED Lighting Market 2016-2020
- Global LED Backlight Display Driver ICs Market 2016-2020
Light emitting diodes (LED) are used in a variety of applications. Although their use was limited to specific lighting needs in the initial days, it is now widely employed in general lighting, which has propelled the lighting market. Since LEDs have several advanced features, they are expected to overtake the CFL and CCFL market. LED is a viable solution for conventional lighting applications. In the coming years, consumers will gain awareness regarding the benefits of the longer lifespan of LED lamps and which will eventually lead to a widespread adoption of LED lamps.
The report, global LED market, is part of Technavio’s hardware and semiconductor research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as computing devices, displays, embedded systems, human machine interface, lighting, semiconductor equipment, and sensors. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.